What refers to the factors of production?

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study question that relates to the factors of production, belongs to a kind of sacred cows of economic theory, which views them as resources that are involved in one way or another for production activities.Traditionally, the concept of factors of production included such components as labor, land and capital.In the second half of the twentieth century, these components also added information.Some researchers also isolated from the concept of "work" in a separate component entrepreneurial talent.

analysis of the processes taking place in today's economy, gives some reason to believe that consideration of the structure of production factors currently requires certain additions and clarifications.

If we consider that one of the factors of production from the point of view of the prevailing trends in the modern economy, it is becoming evident that it is independent and has become an important factor, for example, marketing, the role of which in the conditions of growing competition can not be overestimated.

here comes to the fore the task to meet the needs of the market, which limits the use of administrative methods of management and thus enhances market democracy and professionalism.

classical model of competition is: "to reduce the price, improve quality, provide the buyer with additional benefits (in the form of payment, delivery, maintenance, etc.)."In addition, the implementation of the functions of competition and the positive effects of its manifestations in the dynamics of price and quality of consumer goods in the first place, leading to an objective need for the formation of a competitive environment.And this should be done not only in the interests of producers, but above all, consumers and, secondly, it will link directly to the functions competition with its same benefits, both for companies and for the products they produce.In this case, in the factors of social production it is appropriate to include the competitive advantages of an enterprise.

With the development of technology, production and management innovation, and globalization of national and international competition, the theory of comparative advantage of production factors, which are in abundance, the very problem that relates to the factors of production, no longer meet the current requirements of economic science.Currently, growing recognition of the new theory of competitive advantages.It means the following:

1. The benefits of the enterprise and the goods are no longer static.They vary under the influence of the processes of innovation and investment in technology and production technology, management methods and forms of organization, methods of promotion of products to the markets.

2. The mechanism of formation of market advantage through competition is not the only one.The State is considered here as an essential subject of formation of competitive strategies and advantages of the enterprise.In this regard, the market mechanism is complemented by state regulation mechanism of competitive relations and the competitiveness of enterprises.

3. Globalization of the economy is forcing the company in the formation of its benefits to take into account not only its own interests and industry, but also national and international conditions.

All this indicates that, in response to a question that relates to the factors of production, we have a certain degree of confidence we can state that the competitive advantages have become quite tangible and separate factor.To create them, the state should take measures to create a competitive environment and the protection of competition, stimulate the continuous introduction of innovations, optimization and improvement of state regulation, taking into account trends in the world economy.

These benefits can be defined as the efficiency of the company in any area which, firstly, gives him the best (compared to competitors) the ability to attract and retain customers, and secondly, allows you to receive a steady income, and on this basis to ensurereproduction of fixed capital.